Customer churn refers to when a customer ceases relationships with a company. The customer is perceived as “churned” when a certain amount of time has passed since their last interaction with a product or service.
Reducing churn is a goal for every company, and by leveraging artificial intelligence techniques like machine learning, companies can predict potential churners and add more value to their marketing efforts. The challenge of implementing a successful churn prediction model is to build customer loyalty and increase revenue.
In this sense, predicting and further preventing customer churn will not only save your company a lot of money and time on acquiring new clients but it can also create a new potential revenue stream.
Check out our use case on Churn Prediction for Gym Customer Retention to learn more about how data science can help you predict customer churn.